Technically bankrupt South African Airways looks to sell assets

 

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It’s a sad state of affairs for South African Airways (SAA) at the moment. The South African carrier has been deemed ‘technically bankrupt’ and whilst it has flagged it would apply for another bailout, the airline is looking to interim measures to get its books back in black. Some of those measures include the selling of assets. Among the assets for sale is the airline’s catering arm Air Chefs as well as the cargo unit.

SAA Cargo is one of the few profitable for the airline. Last financial year it earned ZAR387 million rand profit. Now no decisions have been locked in but it is strongly believed that the cargo unit will be separated from the passenger mainline and the operations for it outsourced to private third party.

It would be quite sad to see this airline go considering it is literally the best thing going aviation wise for Africa as a whole but it’s poor standing has sadly scared banks off with the airline struggling to be loaned any more money on commercial terms. It  wasn’t that long ago (aka last year) that the airline received a ZAR3 billion rand injection to prevent a Citibank loan default by the government.

This is very much a watch this space situation. Time will tell if the skies align for SAA.

 

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